Wednesday, Jun 03, 2009
More selling than buying
FT: Latvia auction flop sparks fears of struggle to find debt buyers
A failed Latvian government debt auction on Tuesday sent tremors across financial markets as investors feared that emerging nations round the world would struggle to find buyers for a huge wave of sovereign debt issuance.
Posted by devo @ 11:15 PM (307 views) Add Comment
1 Comment
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1. Beartil2010 said...
Interesting to see there aren't many comments on here - surely this is extremely important? This will be overlooked in the press, but if more nations continue to have these troubles, it will be the 'proof of concept' for bond failures in larger economies to follow. It demonstrates, very clearly, that continual government borrowing and spending cannot get you out of this situation.
'A Swedish adviser to Valdis Dombrovskis, Latvia’s prime minister, said on Tuesday that a devaluation of the lat was just a matter of time.'
I know Latvia is one one of the worst situations of all nations in this crisis, so some could argue it doesn't apply to UK or others, but I still think this is a big warning sign.